Morgan Stanley France has paid Rs 25.35 lakh to settle a case related to alleged manipulation in Nifty options contracts.
The process was done under the Settlement Regulations of the Securities and Exchange Board of India (SEBI), under which an alleged wrongdoer can settle the matter without admitting or denying any guilt.
Between July 2017 and August 2017, Morgan Stanley France (the applicant) and Reliance Strategic Investments traded in long-dated Nifty option contracts which were found to be in violation of certain provisions of the SEBI Act.
It was alleged that both the parties traded in mutually illiquid Nifty put options (PE) contracts with a strike price of 11,400 at a discount to their intrinsic value.
Morgan Stanley had filed a settlement application with the market regulator in February 2022.